Solution

3.3 Global Supply Chain Risks Identified

ADNOC needs to ensure that all supply chain risks are properly identified, evaluated and managed. CIPS (2022b) found that out of a sample of 900 procurement and supply professionals, only 50% implemented risk management strategies for their suppliers, while 60% used the same service level from several vendors despite the potential for disruption. To this purpose, the Resilience Model was created to raise everyone’s level of understanding and serve as a road map for strengthening the entire supply chain from beginning to finish (see Figure 7).

Figure 7:CIPS Risks Resilience Model Analysis.

A risk record can then be produced from the many sources of risk identified following the findings of the research. CIPS (2022c) states that keeping a risk register is a good way to keep track of potential threats, their probabilities, and the countermeasures that should be taken (See table 2);

Table 2:Risk Register by ADNOC Organisation

4.0 Strategic Logistical Implications of Globalisation

4.1 Globalisation and Relevance; Supply Chain and Logistics Context

Globalisation is how travel and trade are conducted worldwide (El Khatib et al,. 2022). This is achieved by broadening the scale of existing interactions between people worldwide. According to CIPS (2022d), this allows manufacturers to expand their consumer base in line with their success in those regions. As an example, ADNOC can access markets in Europe and a region of Asia to procure various products and services by embracing globalisation in the supply chain. This is accomplished by disrupting manufacturers’ need for optimal business procedures (see Fig. 8).

Figure 8:Globalisation factors and impacting supply chain and logistics

4.2 Strategic consideration associated with the global nature of the supply chain

In contrast to the more popular “blue ocean” approach, “red ocean” may be the better option when thinking strategically. According to Narullia et al. (2021), Prioritising, as shown by the blue ocean strategy, entails finding and creating complete (uncontested) markets, possibly by shifting away from the red oceans (not developed, heavily saturated) (see Figure 9).

Figure 9:Red and Blue Ocean and Consideration Strategically.

Most of ADNOC’s rivals in the United Kingdom, where the company is headquartered, use the same method of engaging suppliers for supply chain management. The result of this is the creation of a global commodity market. Because of this, changing their supply chain management would represent the optimal solution, taking them from a red to a blue ocean. ADNOC, for instance, might adopt an up-to-date e-commerce, multi-channel strategy, welcoming globalisation and distinguishing itself from competitors. So, we’ll modify the existing supply chain for buying solar panels from ADNOC to include online shopping. As a result, businesses worldwide are working together to supply chains, both upstream and downstream. To increase its supply chain visibility and customer responsiveness, which in turn increases sales and profitability, ADNOC would need to implement cutting-edge technologies.

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